FED:Hills says half year profit will be lower

Hills Industries
has confirmed its guidance for 2010-11, but warned that net profit would be around 10 per cent lower in the first half year than the prior corresponding half.

"The board re-confirm(s) the guidance previously given to the market that for FY2011, Hills will deliver a modest improvement on the FY2010 result," Hills chairwoman Jennifer Hill-Ling said in a statement released to the market on Friday.

But market conditions remained difficult in the building and industrial products sectors where a number of Hills businesses operate, Ms Hill-Ling said.

"Whilst Hills's net profit after tax for the first half of this financial year is forecast to be around 10 per cent above the six-month period to 30 June 2010, it would be about 10 per cent below the prior year's corresponding result," she said.

"After allowing for the additional shares issued last year, earnings per share will be down by approximately 15 per cent in the first half."